A renewed focus on service
Standard Fasel is a leading player in the field of industrial boiler and burner technology worldwide. Its activities can be divided into three categories: Energy Services (maintenance of existing burner installations), Boiler Services (maintenance of existing boiler installations) and Manufacturing (new-build of medium-sized boiler and burner installations).
High risk, low margin
Though Standard Fasel was traditionally strong in service, the company’s focus had in recent years shifted to new-build activities. This is a segment in which margins are potentially lower with higher associated risks. As a result, the balance sheet deteriorated and the company needed to find a way to improve its financial situation.
Focus on service and costs
In August 2018 Nimbus offered a quick and certain deal for all stakeholders and was able to partly integrate the business into an existing service platform. With 100 per cent of the shares acquired, Nimbus supported the recently revised strategy to focus more on generating growth from service activities and to select new-build projects more carefully, thus ensuring better margins. At the same time, the balance sheet was restructured and the company increased its focus on project management and operational effectiveness, with higher efficiency and lower costs as a result. As the field in which Standard Fasel operates requires specific technological expertise, Nimbus was committed to retaining as many of the 65 employees as possible, including part of the management team.
At the end of 2019, the efforts made for the revised strategy were already paying off. Standard Fasel has experienced growth in its (international) service activities. As a result of this the company has, in combination with the implemented cost-saving activities, significantly improved its financial position. This provides Standard Fasel with an excellent foundation on which to further expand its activities in the coming years.